NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back As Fed Keeps Rates Unchanged

SP500 Moves Lower After Fed Decision

SP500 is losing ground as traders react to Fed Interest Rate Decision. Fed decided to leave the federal funds rate unchanged, in line with analyst consensus.

During the press conference, Fed Chair Powell said that short-term inflation expectations have increased. He added that rising energy prices will push inflation higher. Importantly, Powell noted that he would stay on Fed Board after his term as Fed Chair ends in May.

Today, traders also focused on the strong rally in the oil markets. Oil prices gained 7% after President Trump rejected Iran’s proposal. Traders are worried that ceasefire will not hold and the war restarts, leaving the Strait of Hormuz closed for months.

Traders had a chance to take a look at economic reports. Durable Goods Orders increased by +0.8% month-over-month in March, compared to analyst forecast of +0.5%.

Housing Starts increased by +10.8% month-over-month in March, while analysts expected that they would decline by -0.7%. Building Permits decreased by -10.8%, compared to analyst consensus of -0.7%.

Treasury yields moved higher as traders worried about hawkish Fed. The yield of 2-year Treasuries climbed towards the 3.95% level, while the yield of 10-year Treasuries moved above 4.40%. Rising Treasury yields put additional pressure on stocks.

Energy stocks were the only gainers today as traders reacted to the huge rally in the oil markets. Other market sectors found themselves under pressure in today’s trading sesion.

The nearest support level for SP500 is located in the 7100 – 7110 range. A successful test of this level will open the way to the test of the next support at 7010 – 7020.

NASDAQ Traders Wait For Key Earnings Reports

NASDAQ is losing some ground as traders focus on Fed decision and react to the rally in the oil markets.

NASDAQ traders should be prepared for fast moves as the index will soon react to key earnings reports. Amazon, Alphabet, Meta, and Microsoft will release their quarterly reports today after market close. These reports will have a major impact on NASDAQ dynamics.

In case Big Tech shows strong results and present solid guidance, the market will forget about rising oil prices and focus on AI-related topics.

If NASDAQ declines below the support at 26,950 – 27,000, it will move towards the next support level, which is located in the 26,500 – 26,550 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

Dow Jones Tests New Lows As Oil Prices Soar

Dow Jones retreats as traders worry that rising oil prices will hurt global economy. Boeing, which is down by 3.7%, is the worst performer in the Dow Jones index today.

The rally in Visa stock, which is up by 8.8%, did not provide support to the Dow Jones index. The stock gained strong upside momentum as traders reacted to the better-than-expected earnings report.

From the technical point of view, Dow Jones settled below the support at 49,000 – 49,100 and is trying to settle below the 48,700 level. In case this attempt is successful, Dow Jones will move towards the next support, which is located in the 48,200 – 48,300 range.

On the upside, Dow Jones needs to settle back above the 49,100 level to have a chance to gain upside momentum in the near term.

For a look at all of today’s economic events, check out our economic calendar.